Dick's Sporting Goods Cuts Outlook on Weak Golf, Hunting Sales

Dick’s Sporting Goods (DKS) reported an 8% increase in its first-quarter profit but slashed its outlook for the year, spurred by weaker-than-expected sales in hunting and golf.

The seller of sports equipment and apparel now expects to book full-year earnings of $2.70 to $2.85 a share, below its previous call for $3.03 to $3.08 a share. Dick’s also sees comparable store sales rising 1% to 3%, rather than 3% to 4%.

Dick’s also forecast a per-share profit of 62 cents to 67 cents for the second quarter. The consensus estimate on Wall Street is 82 cents.

Shares tumbled 15.8% to $44.76 in recent trading on Tuesday. Since the start of the year, Dick’s stock has fallen nearly 23%.

CEO Edward Stack said the retailer had anticipated a slight rebound in golf sales after a difficult first quarter last year. Dick’s, which owns the Golf Galaxy chain as well, saw “a continued significant decline.” Golf Galaxy’s same-store sales fell 10% in the latest period.

“In the case of hunting, we planned the business down based on last year’s catalysts, but it was even weaker than expected,” Stack added.

Dick’s earned $70 million in the first quarter compared to $64.8 million in the year-ago period. Per-share earnings rose five cents to 57 cents. Excluding gains from asset sales and other items, adjusted earnings checked in at 50 cents a share versus 48 cents.

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U.S. stocks declined on Tuesday in a retreat from the previous session's sharp rally, but major indexes remained on track for first-quarter gains and the S&P 500 was set for its ninth straight quarterly rise.